A total of 142 new Cadillacs were reported as registered in South Korea in June 2018, a decrease of 30 percent compared to June 2017 sales. The increase comes after a 31 percent decrease in May 2018 and a 29 percent increase in April.
Individual model sales performance was as follows:
- Cadillac ATS sales decreased 53 percent to 13 units, including 2 units of the ATS-V
- Cadillac CTS sales decreased 71 percent to 10 units, including 1 units of the CTS-V
- Cadillac CT6 sales decreased 44 percent to 34 units, including 17 units of the CT6 and 17 units of the CT6 Turbo
- Cadillac XT5 sales increased 70 percent to 63 units, with all units sold being of the XT5 3.6 variety
- Cadillac Escalade sales decreased 47 percent to 22 units
- Cadillac does not market the XTS nor the Escalade ESV in South Korea
In the first six months of 2018, Cadillac South Korea sales increased 2.31 percent to 842 units.
Sales Results - June 2018 - South Korea - Cadillac
|MODEL||JUN 2018 / JUN 2017||JUNE 2018||JUNE 2017||YTD 2018 / YTD 2017||YTD 2018||YTD 2017|
The Cadillac Society Take
It would appear that Cadillac is suffering from negative consumer perception in South Korea following the local restructuring of its parent firm, General Motors, during the first few months of 2018.
In the first three months of 2018, GM underwent a major reorganization in South Korea that saw the automaker and the Korean Development Bank (KDB) agree on reducing GM’s existing debt by approximately $2.8 billion while closing a Chevrolet plant in the country. The restructuring proceedings were covered extensively by the media, with the overwhelming majority of this coverage portraying GM and its Chevrolet brand in a negative light. Prior to the finalization of the restructuring agreement, rumors ran rampant that GM would completely withdraw from the Korean market if it didn’t get the concessions it was looking for. Though Cadillac was not directly mentioned during this coverage, its image still suffered as a result of its association with General Motors and Chevrolet.
As such, we believe that Cadillac South Korea sales are currently being negatively impacted by image-related factors associated with the prior restructuring operations of its parent. Most of all, we imagine that consumers are reluctant to invest in a Cadillac vehicle due to being uncertain about the brand’s future in the local South Korean market.
Whether Cadillac (and GM) will be able to recover from the damage caused by these circumstances is currently unclear, but we sure hope that it will be the case.
About The Numbers
- All percent change figures compared to Cadillac June 2017 sales, except as noted
- Cadillac South Korea sales figures represent vehicle registrations rather than raw sales volume